My business is a software development company, it’s over 20 years old, employs around 20 people and, until this FY, has been successful and profitable. However this year we have made a significant loss, and I am in the process of making a round of redundancies to cut headcount and try to get losses under control.
I am the sole shareholder and have been the managing director since the company was founded. I pay myself a salary commensurate with the role. However, I have concluded that the company needs fresh blood at the helm, and I have decided to include myself in the redundancies. My intention is to promote from within, for a senior colleague to take on the role of MD. On this basis, the role itself has not become redundant.
However, having given 20 hard years to the business, I don’t want to walk out with nothing apart from the shares – my question to this forum is, would it be legally acceptable to award myself an ex-gratia payment in lieu of a redundancy payment?
I am the sole shareholder and have been the managing director since the company was founded. I pay myself a salary commensurate with the role. However, I have concluded that the company needs fresh blood at the helm, and I have decided to include myself in the redundancies. My intention is to promote from within, for a senior colleague to take on the role of MD. On this basis, the role itself has not become redundant.
However, having given 20 hard years to the business, I don’t want to walk out with nothing apart from the shares – my question to this forum is, would it be legally acceptable to award myself an ex-gratia payment in lieu of a redundancy payment?
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